Logitech reports $180 million operating loss
New York, NY, United States (4E) – Computer mice manufacturer Logitech International SA said that it has began selling its video security and remote-control businesses after reporting disappointing third quarter numbers.
For the third quarter of fiscal 2013, the electronics company suffered an operating loss of $180mn with $615mn in sales, which is 14 per cent lower compared to the same period in the previous year.
In the company’s earnings statement, Chief Executive Bracken Darrell said the results were unacceptable and decisive action will be taken as a result of his strategic review.
The poor results is blamed on slumping demand for personal computers worldwide, according to Darrell. As a response, the company is turning its focus on mobile computing. Darrell has also identified some of Logitech’s current product categories that are not in line with the new strategy.
The company said the move to divest some if its businesses and discontinue other non-strategic products like speaker docks by the year-end will allow them to develop mobile-related products and tap into the fast-growing smartphone and tablet markets.
Logitech also declared in its quarterly report that it took a $211mn non-cash impairment charge, citing a slowdown the PC industry.